- It is no secret that 2021 has been a clamorous year for the crypto market. The cryptocurrency was changing hands around $400 on 11 May after dropped from nearly 629 high to 256 low on the same day of 10 May and opens to 490 on the next day, having dropped to 260 on the very next day(12 May).
- The coin price is trailing at 81.26 on Wednesday with a percentage change of nearly -81.3% from 11 May to today.
- Price shredded to 60% on the same day of 11 May. This is how the coin ran on the critical level of nearly 300-400.
There are various factors of why a coin shows such drastic oscillations and for the ICP we can see the same. Icp stands for Internet Computer (ICP) blockchain. In order to understand the journey between its inception to 400 and 82 today, we need to consider the following things promised by ICP-
- Cloud services will no longer be required to create decentralised applications.
- Blockchain-based cloud computing, DFINITY promises that all apps and systems will run at web speeds and web applications will be efficient.
These promises have raised $121 million of equity funding, with investors including Andreessen Horowitz, Polychain Capital, and Scalar Capital, among others.
Now, taking into account the factors that have affected the price of Internet Computer(ICP)-
- The price of BTC: The comments by Elon Musk regarding the protection of the environment are a key factor behind the recent market crash. This has sent the price of ICP to 100 from around 600.
- Supply-Demand confusion: The total token of ICP is 469,213,710 and there is no sign of whether this is the total supply so that we can predict the price would go up and down or the supply would match the demand.
- China’s crypto ban: This incident has shaken the market and holders of cryptocurrency in massive doubt about whether to hold the coin or not and such doubt shrunk the prices.
The above chart shows the lack of price in the 20 days span of time. The price movement was very historic and volatile.
Conclusion: The company aims to own about 125 data centers that can support 4000 nodes. Whereas when the ICP was first launched there were 46 available data centers in different continents and the nodes formed around 1200. Such an increment in data centers could predict the movement of nodes eventually from thousands to millions. and likewise, they could dig 1000 blocks in 1 second. Presently, they are digging a block of 1000 in 2.5 seconds.
(Note: The unit is USD)